Shenzhen Kaisite Medical Technology Co., Ltd

In 2017, 25 provincial-level regions and above initiated the centralized procurement process. The Beijing-Tianjin-Hebei region took the lead in cross-regional joint procurement, with unified centralized procurement within the alliance and joint implementation of negotiation results. Provincial alliances, including Inner Mongolia, Ningxia, Gansu, Hunan, Heilongjiang, Liaoning, and others, respectively launched transparent online procurement processes. Currently, the alliance mainly shares data on qualifications and price limits, and in the future, it may form a pricing negotiation consortium.

The remaining 13 items specify that enterprises which do not maintain the database will be unable to participate in high-value sunshine procurement in Fujian; Yunnan initiates two batches of high-value consumables projects and declaration work; Liaoning includes consumables into indicators before joining the provincial alliance; Anhui conducts clinical examination reagent database declaration; Jiangxi, Guizhou and other places are still carrying out bidding work in batches.

The 2018 national negotiation identified the coronary stent system, artificial hip joint prosthesis, ICD (implantable cardioverter defibrillator system), and CRT (cardiac resynchronization therapy series) as the first batch of high-value consumables for national negotiation pilot products.

The import dependence of the above four categories of products is due to relatively high technical barriers, the share of foreign capital is significantly higher than that of domestic enterprises and the pricing is significantly higher than similar domestic products. The 2018 national negotiation was aimed at focusing on reducing the prices of such imported products.

The domestic competition landscape for the four categories of products under national negotiation

National negotiations put some pressure on the pricing of high-value consumables, but unified negotiations and uniform pricing significantly reduce the time and resource investment by enterprises in government affairs during the original procurement process, and to some extent alleviate the hospital’s “second round of price negotiations”. The overall impact on domestic enterprises is not necessarily very negative.